Question

In: Economics

67. a. Compute the Future value for Principal value of $17,500 with annual interest rate 7.75%...

67.

a.

Compute the Future value for Principal value of $17,500 with annual interest rate 7.75% compounded monthly at the end of 8 years.

a.

$30,495.25
b.

$31,329.20
c.

$32,466.45
d.

$33,110.50

b.

Alec and Lexi compute that they will need $20,000 in 4years to build to remodel their kitchen. How much should they invest now at 5.5% interest compounded quarterly to have the $20,000 in 4years?

a.

$ 13,328.60
b.

$ 11,035.10
c.

$13,071.10
d.

$16,074.45

Solutions

Expert Solution

a)

Option c

b)

Option d

Rahul Sunny answered 1 year ago
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